"Hindenburg Research prepares an investigation report on a target company by going through its public records, internal corporate documents and by talking to its employees. The report is then circulated to Hindenburg's limited partners, who, together with Hindenburg, take a short position in the target company before publicly releasing the report. Hindenburg takes profits if the target company's share price declines"
These firms have to do their homework. They have to do their _own_ homework; they cannot just copy someone else's. Failure, i.e., being wrong, comes with a high cost.
Whereas VC will piggyback on others' investment choices. VC are wrong more than they are right, by a large margin. Failure is low cost. It's like playing the lottery. There is no skill involved.
Who has more skin the game. Who takes bigger risks. Questions for the reader.
They try and provide the spark to bring them quickly back down to earth in flames.
That's why they call it Hindenburg.
Does that not get somewhat on the insider trading angle?